Analyst Ed Engel of Compass Point reiterated a Buy rating on Galaxy Digital, boosting the price target to $43.00.
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Ed Engel has given his Buy rating due to a combination of factors that highlight Galaxy Digital’s potential for growth and undervaluation in the market. The company is expected to energize 1.7 GW of additional capacity by the end of 2026, with 900 MW potentially receiving ERCOT approval by the end of 2025. This expansion is significant as it positions Galaxy Digital to capitalize on the increasing demand for high-performance computing (HPC) capacity.
Furthermore, despite a recent pullback in crypto prices, Galaxy Digital’s crypto operating business is anticipated to deliver strong quarterly results. The company’s stock is currently undervalued compared to its peers, trading at a lower enterprise value per megawatt. Additionally, recent developments with CRWV, including diversified customer mix and strengthened partnerships with major players like Microsoft and OpenAI, reduce counterparty risk and enhance confidence in Galaxy Digital’s long-term contracts. These factors contribute to a positive outlook and justify the increased price target of $43.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GLXY in relation to earlier this year.